The net loss will probably total 3 billion yen ($39
million) in the six months ending Sept. 30, compared with its
earlier loss estimate of 2 billion yen, Tokyo-based Oki said in
a statement today. The company also lowered its sales estimate
for printers in Spain, it said.

Oki, with customers including International Business
Machines Corp., has said it intends to improve management and
internal controls to prevent future overstatements. The company
last month said the unit in Spain overstated accounts
receivables, prompting the biggest one-day decline in shares in
at least 37 years.

The Tokyo Stock Exchange said today that Oki will be
removed from its watchlist for possible delisting, effective
tomorrow. Oki was put on the list after reporting the accounting
irregularities and was asked to submit a business improvement
report, according to the statement.

The accumulated effect on Oki’s earnings over at least six
years from the accounting irregularities totaled 30.8 billion
yen, the company said earlier this week.

Annual Estimate

Oki kept its full-year profit estimate unchanged, as the
company expects higher demand for its information and
communication systems, including automated teller machines, to
make up for lower-than-expected sales for its printers, it said.

Net income will probably total 11 billion yen for the year
ending March, Oki said in May. That compares with the 9.1
billion yen average of four analysts’ estimates compiled by
Bloomberg. Oki today raised its full-year sales estimate 1.6
percent to 447 billion yen.

First-quarter loss widened to 4.1 billion yen in the three
months ended June 30 from a 3.1 billion yen loss a year earlier,
the Tokyo-based company said in a statement today. Sales rose
8.7 percent to 91.1 billion yen.

Oki set aside money for potentially uncollectable accounts
following the misconduct in the first quarter, it said. A
stronger yen also eroded the company’s overseas earnings when
repatriated, Oki said.

The stock fell 2.2 percent to 90 yen in Tokyo trading
before the announcement, trimming its gain this year to 30
percent.